Respuesta :
Return on total assets reflects operating efficiency. It is computer by taking net income divided by average total assets for the period.
What do you mean by Return on total assets ?
The ratio of a company's profits before interest and taxes (EBIT) to its total net assets is called return on total assets (ROTA). The amount of financial and operational income a firm obtains in a financial year as compared to the average of that company's total assets is what is known as the ratio between net income and total average assets.
The ratio is regarded as a sign of how successfully a business uses its assets to produce profits. To maintain the statistic concentrated on operating earnings without the influence of tax or financing variations when compared to other similar companies, EBIT is used in place of net profit.
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